Shares of voice AI company, SoundHound AI (NASDAQ: SOUN), are up 29%, or $3.11, on a volume spike to 153 million – well above its daily average volume of 38.7 million. All after the company posted its “strongest ever quarter,” according to CEO Kevyan Mohajer.
Its EPS loss of three cents was beaten by two cents.
Revenue of $42.7 million, up 217.2% year over year, beat by $9.82 million.
The CEO also highlighted significant growth across automotive, AI customer service for enterprise, and AI and automation for restaurants. He also said the company surpassed “another record, processing more than 1 billion queries per month on our platform.”
The company then increased its full-year 2025 revenue outlook, now expecting it to range from $160 million to $178 million. That’s up from its prior outlook for $157 million to $177 million.
D.A. Davidson Analysts Reiterated a Buy Rating
Fueling even more momentum, according to analysts at D.A. Davidson, “SoundHound is capturing market share across a massive and underpenetrated TAM (total addressable market) while making progress toward profitability.” The firm also reiterated a Buy rating on the stock and raised its price target to $15 from $10.
Analysts at Wedbush reiterated an outperform rating on the stock, with a $16 price target. “Overall, we believe this was a major step in the right direction for the SOUN story, with strong demand heading into FY25 across all verticals as the company remains an under-appreciated pure-play AI company that is making significant strides in taking share across all verticals,” said the firm, as quoted by Seeking Alpha.
Piper Sandler has a $12 price target and a neutral rating, noting, “We are encouraged that SoundHound saw the normalized growth underneath, right ahead of Amelia turning organic this month, and that profitability/GPMs came in much better than anticipated. We remain constructive on the long-term opportunities, but see a balanced risk-reward.”
Last trading at $13.85, we’d like to see SOUN retest $18 near term.
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